Difference between Hard Money Loans and Bank Loans- Which one is the Best?
When looking for monetary support, the borrowers face a challenge in choosing between hard money loans and bank loans. The confusion is due to the pros and cons of both lending methods. This becomes challenging when one hasn’t ever taken a hard money loan. So here is the difference that will help decide best.
Hard money loan Vs. Bank loan
• Time
The speed of the lending process is one of the biggest differences between both loans. When you contact a hard money lender, you can stay assured you will get the loan approved fast. In this process, the time you apply for the loan to the date you get the loan sanctioned is faster. Sometimes you can even get your loan processed in 24 hours.
While bank loans are a time-consuming process that can take up to 4 to 6 weeks for sanctioning. Further, there is a lot of paperwork that complicates the entire procedure.
• Approval criteria
An essential difference between the two loans is your requirement. In the case of hard money loans, the approval process is fast, less complicated, and time-consuming than the bank loan.
A hard money loan is based on hard assets. Thus the approval process of the same will be based on actual assets. For example, the value of a property. In contrast, the bank loan is entirely based on the borrower’s credit score. The banks will enquire about the tax returns of the borrower or look into the payment history to see if they are eligible for the loan.
The hard money lenders in Phoenix do not look into the credit score. The landing process here is entirely different. Getting a hard money loan is a lot faster and convenient to get the loan funded in a short time. Further, it has a lot less requirement than the banking institutions lending money based on the credit score.
Contact a good hard money lender.
There are a number of hard money lenders in Phoenix who can offer you the loan in a short time. However, to get the services from the best, contact Private Capital Investors. We have experience helping our clients get the loan sanctioned at the best rates. We will ensure you get your loan in the shortest time possible.
